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Two Ways: Bad Day For Baidu


Strengthen your portfolio in good times and bad.

Bad Day for Baidu

Baidu (BIDU) shares are getting pounded on this morning. The Chinese search engine beat Wall Street estimates by reporting profits for the third quarter of $2.16 a share, $0.35 better than consensus expectations.

But the company gave downside guidance on revenues for the fourth quarter, saying it expected $174 to $180 million versus consensus of $202.90 million.

Shares are down nearly $75, or -17%, to 360.00 in the premarket. Toddo mentioned Baidu yesterday in Monday Morning Quarterback: The Bull-Bear Debate!

From the Bull Pen: If you're looking for a short-term day trade, keep an eye on Research In Motion (RIMM). The stock has flipped green a few times this morning while the rest of the high beta tech plays are red -- a sign of demand. Watch for the stock to make a first-hour low. A sell stop can be set 2% below entry.

From the Bear Cave: The sentiment from Baidu could weigh on the tech sector. Bears can also look to Broadcom (BRCM), a play Professor Smita Sadana mentioned on the Buzz yesterday. Those playing the downside can set a buy stop above the 50-day moving average (currently $29.25).

A Quick Check Around the World

Asian trading closed with the Nikkei -1.45%, India -2.31%, Hang Seng -1.86%, Shanghai -2.83%, and Taiwan -0.14%.

Across the pond, we see the FTSE 0.37%, CAC 0.30%, DAX 0.26%

As of 8:10 a.m. EST, S&P Futures are trading -0.25 to 1066.00 and Nasdaq futures are -0.500 to 1747.50.

A Look at Commodities

Over in commodities, crude oil is +0.18 to 78.84 while gold is -2.60 to 1040.20 this morning. Silver is -+0.25to 17.120 and copper -0.005 to 3.0105.

The dollar index is -0.0500 to 75.9500.

On the Radar


9:00 CaseShiller Home Price Index -11.45% cons.
9:00 Consumer Confidence 54.0 cons.

Click here for the full trading radar.

Welcome back and have a great day!
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No positions in stocks mentioned.

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